What happened to PMI insurance

[Tommy]

when you put less then 20% down on a house
the bank makes you get PMI insurance

just incase you default on the loan

so when all these people couldnt make their payments the banks really shouldnt have lost any money ...

cause the PMI should have saved them

[doctordog]

when you put less then 20% down on a house
the bank makes you get PMI insurance

just incase you default on the loan

so when all these people couldnt make their payments the banks really shouldnt have lost any money ...

cause the PMI should have saved them

Some of them did indeed put 20% down then they took out Home equity loans and other loans and bled the equity as far as they could. When the value went down, they were fucked and could not recover.

[Moby]

Not all lending institutions required PMI insurance. I know a few people that paid it, then refinanced to avoid it and others that never had to pay it all. My local bank required by the local mortgage companies didn't.

[Independent Harry]

Lending institutions only required PMI insurance on 1st lien positions over 80% LTV. So you could take a 80% 1st and a 20% 2nd to avoid PMI. And again, it wasn't the foreclosures that killed everyone. It was the insuring of the mortgage backed securities that did...